The Securities and Exchange Commission of Pakistan (SECP) has issued revised regulations, authorizing the registered valuers to carry out the valuation of properties, stocks, shares, debentures, securities, and any other assets of companies.
According to the revised Companies (Further Issue of Shares) Regulations, 2020, the SECP has given authorization of valuation to the Consulting Engineers registered with Pakistan Engineering Council (PEC), the practicing chartered accountants, having satisfactory Quality Control Review awarded by the Institute of Chartered Accountants of Pakistan, and any other person who may be notified by SECP.
According to SECP, the said valuation procedure will not be applicable to the valuers engaged in the valuation of banking transactions, as such valuers will continue to be regulated under the applicable laws.
The eligible valuers will also be deemed registered with the SECP and will be entitled to conduct valuation as required, subject to fulfillment of the requirements.
All such valuers will continue to be regulated, administered, and monitored by the entities in which they are originally registered, and they will comply with all relevant rules, regulations, and instructions of such entities.
The valuers who are independent will be eligible to conduct the valuation:
(a) In respect of movable property, i.e., plant and machinery, immovable property, i.e., land and building etc., and natural resources and exploration thereof, by a valuer registered with the PEC as a Consulting Engineer.
(b) In respect of stocks, shares, debentures, securities, net worth of a company or an undertaking, goodwill and other intangible assets, services, and liabilities, by a valuer who is a practicing chartered accountant having satisfactory Quality Control Review awarded by the Institute of Chartered Accountants of Pakistan.
(c) In respect of all other assets, not covered in clauses (a) and (b), by a valuer registered with PEC as a consulting engineer, having experience as a valuer of at least five years in the relevant field.
To maintain independence and impartiality and to ensure true and fair valuation, the valuer will not undertake valuation of any assets in which he/she has a direct or indirect interest or becomes so interested at any time before submission of the report.
The valuation will not be older than six months, or such other time period as may be notified by the Commission, from the date of submission to the registrar in case of a right issue.
The relevant entity or agency, on its own motion or on the reference by the Commission, may initiate necessary action against the eligible valuers for any misconduct or failure to perform professional duties in accordance with its rules and regulations, and may cancel the registration of such a valuer, according to SECP.
Source: Pro Pakistani
